Malaysian Airlines likely won't return to profit this year, CEO says

This photo illustration shows a journalist looking on the data communication logs from British satellite operator Inmarsat and released by Malaysia's Department of Civil Aviation (DCA) in Kuala Lumpur on missing Malaysia Airlines flight MH370 on May 27, 2014. Malaysia's aviation authority released on May 27 the satellite data used to determine that flight MH370 went down in the southern Indian Ocean following demands from sceptical relatives of those on board. AFP PHOTO / MOHD RASFAN (Photo credit should read MOHD RASFAN/AFP/Getty Images)

A man stands in front of a billboard in support of missing Malaysia Airlines flight MH370 as Chinese relatives of passengers on the missing Malaysia Airlines flight MH370 have a meeting at the Metro Park Hotel in Beijing on April 23, 2014. The hunt for physical evidence that the Malaysia Airlines jet crashed in the Indian Ocean more than three weeks ago has turned up nothing, despite a massive operation involving seven countries and repeated sightings of suspected debris.. AFP PHOTO / WANG ZHAO (Photo credit should read WANG ZHAO/AFP/Getty Images)

In this picture taken May 14, 2014 a Malaysia Airlines staff walks up to a flight prior to departure at the Kuala Lumpur International Airport in Sepang. Malaysia Airlines is expected to announce its first quarter earnings after a bruising period since Flight 370 vanished. AFP PHOTO/ Manan VATSYAYANA. (Photo credit should read MANAN VATSYAYANA/AFP/Getty Images)

In this photo taken on May 5, 2014 the Phoenix Autonomous Underwater Vehicle Artemis Bluefin-21, is shown on the deck of the Australian navy ship Ocean Shield berthed at Fleet Base West near Perth as it prepared to resupply and undertake routine maintenance. Ocean Shield, with the Autonomous Underwater Vehicle on board, was due to head back on May 10 to the remote area of ocean off Western Australia to continue searching for missing Malaysia Airlines Flight MH370. AFP PHOTO / Greg WOOD (Photo credit should read GREG WOOD/AFP/Getty Images)

The attached map shows MH370’s flight path, based on the best available knowledge of the investigation team. There are a number of possible flight paths to the southern Indian Ocean, and three boxes indicating where MH370 likely ended. These flight paths differ based on different projections of the aircraft’s speed, shown on the map in knots.

The attached map shows MH370’s flight path, based on the best available knowledge of the investigation team. There are a number of possible flight paths to the southern Indian Ocean, and three boxes indicating where MH370 likely ended. These flight paths differ based on different projections of the aircraft’s speed, shown on the map in knots.

The attached map shows MH370’s flight path, based on the best available knowledge of the investigation team. There are a number of possible flight paths to the southern Indian Ocean, and three boxes indicating where MH370 likely ended. These flight paths differ based on different projections of the aircraft’s speed, shown on the map in knots.

Photo of a map provided by GeoResonance, which claimed on Tuesday April 29, 2014, that it found wreckage thought to possibly be from missing Flight MH370. The photo was posted to Twitter by user Cristina Lombardi.

Photo of a map provided by GeoResonance, which claimed on Tuesday April 29, 2014, that it found wreckage thought to possibly be from missing Flight MH370. The photo was posted to Twitter by user Jickson Johnson.

PERTH, AUSTRALIA - APRIL 17: A South Korean P3 Orion aircraft takes off from Pearce Airbase, in Bullsbrook, 35 kms north of Perth to help in the search for missing Malaysia Airlines flight MH370 on April 17, 2014 in Perth, Australia. Twenty-six nations have been involved in the search for Malaysia Airlines Flight MH370 since it disappeared more than a month ago. The Malaysian Airways aircraft went missing on 8th March 2014 whilst on a flight between Kuala Lumpur and Beijing. (Photo by Greg Pool - Pool/Getty Images)

AT SEA - APRIL 17: In this handout image provided by Commonwealth of Australia, Department of Defence, Phoenix Autonomous Underwater Vehicle (AUV) Artemis begins its dive in the search for the missing Malaysia Airlines Flight MH370 on April 17, 2014. Twenty-six nations have been involved in the search for Malaysia Airlines Flight MH370 since it disappeared more than a month ago. The Malaysian Airways aircraft went missing on 8th March 2014 whilst on a flight between Kuala Lumpur and Beijing. (Photo by LSIS Bradley Darvill/Australia Department of Defence via Getty Images)

KUALA LUMPUR, MALAYSIA - MARCH 26: Malaysia's Minister of Defence and acting Minister of Transport Hishammuddin Hussein (C) is viewed through a lens as he speaks during a press conference on March 26, 2014 in Kuala Lumpur, Malaysia. The search for flight MH370 resumes today after rought winds and high swells prevented crews from searching for debris yesterday. Six countries have joined the search, now considered to be a recovery effort, after authorities have announced that airliner crashed in the Southern Indian Ocean and that there are no survivors. (Photo by Rahman Roslan/Getty Images)

Malaysia's Minister of Defence and Acting Transport Minister, Hishammuddin Hussein (L) looks at maps as Director General of Civil Aviation Department (DCA) Azharuddin Abdul Rahman (R) answers questions during a press conference at a hotel near Kuala Lumpur International Airport in Sepang on March 17, 2013. An investigation into the pilots of missing Malaysia Airlines flight 370 intensified on March 17 after officials confirmed that the last words spoken from the cockpit came after a key signalling system was manually disabled. AFP PHOTO/ MANAN VATSYAYANA (Photo credit should read MANAN VATSYAYANA/AFP/Getty Images)

US navy captain Mark Matthews (C) speaks with journalists following a media conference involving Angus Houston, head of the Joint Agency Coordination Centre in Perth on April 9, 2014 on the search for missing Malaysia Airlines flight MH370. Australian ship Ocean Shield detected two more signals on April 8 to match a pair of transmissions picked up earlier in the week that have been analysed as consistent with flight data recorder emissions, Angus Houston said. AFP PHOTO / POOL / Greg WOOD (Photo credit should read GREG WOOD/AFP/Getty Images)

Flight MH370's pilot, Capt. Zaharie Ahmad Shah

CANBERRA, AUSTRALIA - APRIL 10 : A handout image released by the Australian Maritime Safety Authority (AMSA) in Canberra, Australia, 10 April 2014, shows the search area and Sonobuoy search area where 14 planes and 13 ships are scouring a 57,923 square km area of ocean for the wreckage of flight MH370 on 10 April 2014.Flight MH370 went missing after losing radio contact with Malaysian and Vietnamese air traffic control after leaving Kuala Lumpur International Airport on March 8. The Beijing-bound flight carried 239 passengers including 12 flight crew from 14 different countries. (Photo by AMSA/Anadolu Agency/Getty Images)

Angus Houston (2nd-L), head of the Joint Agency Coordination Centre leading the search for missing Malaysia Airlines flight MH370 speaks at a media conference in Perth on April 9, 2014. Australian ship Ocean Shield detected two more signals on April 8 to match a pair of transmissions picked up earlier in the week that have been analysed as consistent with flight data recorder emissions, Houston said. AFP PHOTO / POOL / Greg WOOD (Photo credit should read GREG WOOD/AFP/Getty Images)

A graphic of the area being searched for missing Malaysia Airlines flight MH370, is displayed during a media conference involving Angus Houston, head of the Joint Agency Coordination Centre in Perth on April 9, 2014. Australian ship Ocean Shield detected two more signals on April 8 to match a pair of transmissions picked up earlier in the week that have been analysed as consistent with flight data recorder emissions, Houston said. AFP PHOTO / POOL / Greg WOOD (Photo credit should read GREG WOOD/AFP/Getty Images)

Angus Houston, head of the Joint Agency Coordination Centre leading the search for missing Malaysia Airlines flight MH370, points to a graphic of the search area during a media conference in Perth on April 7, 2014. An Australian navy ship has detected new underwater signals consistent with aircraft black boxes, Houston said on April 7, describing it as the 'most promising lead' so far in the month-old hunt for missing Flight MH370. AFP PHOTO / Greg WOOD (Photo credit should read GREG WOOD/AFP/Getty Images)

Angus Houston, head of the Joint Agency Coordination Centre leading the search for missing Malaysia Airlines flight MH370, displays a graphic of the search area during a media conference in Perth on April 7, 2014. An Australian navy ship has detected new underwater signals consistent with aircraft black boxes, Houston said on April 7, describing it as the 'most promising lead' so far in the month-old hunt for missing Flight MH370. AFP PHOTO / Greg WOOD (Photo credit should read GREG WOOD/AFP/Getty Images)

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By Anshuman Daga
SINGAPORE (Reuters) - Malaysian Airlines' chief executive Ahmad Jauhari Yahya said the loss-making carrier will likely miss its target of returning to profit this year as it struggles with a sharp drop in passenger demand following the disappearance of flight MH370 in March.

Jauhari told analysts in a conference call late on Thursday that 2014 will be "an uphill struggle" for Malaysian Airline System Bhd (MAS) as the carrier overhauls its business strategy. MAS, which has lost money for the past three years, reported its worst quarter in over two years on Thursday.

"Two months on, negative sentiment and perception still outweigh, and this has impacted our company. Our turnaround plan for profitability by end of 2014 is probably now not achievable," Jauhari said.

MAS, which did not provide financial forecasts in its earnings statement, is working on a new business plan to try to cut costs. Reuters reported earlier this week that the airline is looking to sell a stake in its engineering unit and upgrade its ageing fleet as part of an overhaul. ($1 = 3.2260 Malaysian Ringgits)